New York’s surcharge expiration a Jersey windfall?

The argument over the state’s so-called millionaire’s tax (actually an income tax surcharge on those earning more than $200,000) is raging here in the Capitol but it’s also being looked at across the border in New Jersey. Specifically, the Garden State’s legislative budget and finance officer estimates that letting the surcharge expire as Gov. Cuomo is planning, would bring in at least another $350 million to New Jersey.

That’s because the Jersey residents who now pay New York City income tax get a credit from their state taxes based on what they pay here. It’s an illustration of something that advocates, mostly the labor-backed Fiscal Policy Institute, have made for years: that a substantial amount of NY income taxes are paid by New Jersey or Connecticut residents who work in the city and therefore pay taxes in the Empire State.

This was outlined in a story over the weekend where Star-Ledger reporter Jarrett Renshaw notes that lawmakers in New Jersey, like here, are debating a millionaire’s tax.